Most restaurants are under constant pressure to generate more revenues and minimize capital expenditure. In order to achieve this goal, they look out for ways to sustain growth. While a majority of these restaurant units would concentrate on increasing same store sales to influence their balance sheets, paying off their debts and purchasing new stocks, a few others would also consider a restaurant acquisition plan.
This is because they know that there is significant amount of money floating in the market, thanks to the existence of successful private equity firms. With the right restaurant marketing plan, restaurant concepts can turn to acquisitions in order to sustain their personal growth. In this context, it is also important to mention that a successful market acquisition is one in which the acquired restaurant is kept as independent as possible and its business culture kept intact.
A restaurant acquisition depends entirely upon the amount of attractiveness a restaurant unit(s) can generate for its potential buyers. But keeping in mind the fact that the free cash flow in the restaurant industry is quite steady if not above average for the past few quarters, private equity firms are more interested in restaurant acquisitions.
From the restaurant’s perspective too, an acquisition can be the best restaurant marketing plan to acquire ready cash to pay off its debts and dividends and broaden its asset base.
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